The Most Valuable Business Legal Forms You Will Ever Need, 3E (current for any state) (Most Valuable Business Legal Forms You'll Ever Need)

218 Pages·2001·2.27 MB·English

by  James C Ray

Business/Legal Reference L S G ®
E G A L U R V I V A L U I D E S
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etting the right legal forms can cost you thousands of dollars in lawyers fees; B
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using incomplete or poorly drafted forms can cost you your business. But with a
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good starting point and an understanding of the issues, you can easily tailor your
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own simple contracts, forms and agreements. The Most Valuable Business Legal Forms You’ll
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Ever Need provides you with all of the important legal forms you need to save you thou-
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sands of dollars in legal fees and protect yourself from liability.
OST ALUABLE
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Complete with step-by-step instructions and the agreements you need, this book gives you S
the information to understand and execute effective and legal business deals. S
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Includes valuable forms for:
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• Borrowing and lending money • Leasing residential property G
• Purchasing and selling equipment • Buying, selling, and leasing commercial A ♦ Contracts
USINESS
• Hiring and taxing employees property
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• Hiring independent contractors • Purchasing and selling items and services Employment
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• Filing for copyrights and trademarks in business
applications
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• Settling disputes through mediation or • Renting equipment
arbitration • Amending and assigning contracts R ♦ Partnership
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• Assigning and revoking general and spe- • Getting and releasing liens
agreements
cific powers of attorney S
Y EGAL ORMS
Plus, it includes these sample filled-in forms and more: O
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• Boilerplate contracts • Partnership agreement
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• Employment application • Power of attorney L
• Non-compete agreement • Contract for services E
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• Work made-for-hire agreement • Demand for payment
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R Y E ♦
James C. Ray received his law degree from the Duke Law School. He is a member of the ’ Power of
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bar in North Carolina and Georgia and is certified as a mediator by the North Carolina E OU LL VER attorney
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Administrative Office of the Courts and the North Carolina Industrial Commission.
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♦
Formerly a partner in the Raleigh office of LeBeouf, Lamb, Greene & MacRae, Mr. Ray is Residential
now a visiting lecturer in business law at North Carolina State University and a member of
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the faculty of the Legal Assistants’ Program at Meredith College in Raleigh. R
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and many
Legal Survival Guides®– Your #1 Source for Real World Legal Information Y
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more...
Business/Legal Reference $21.95 U.S. B
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F
O James C. Ray
R
SPHINX® PUBLISHING M 3 E
S RD DITION Attorney at Law
ANIMPRINTOFSOURCEBOOKS, INC.® 3
NAPERVILLE, ILLINOIS
T M
HE OST
V
ALUABLE
B L
USINESS EGAL
F Y ’
ORMS OU LL
E N
VER EED
Third Edition
James C. Ray
Attorney at Law
S P
PHINX® UBLISHING
ANIMPRINTOFSOURCEBOOKS, INC.®
NAPERVILLE, ILLINOIS
www.SphinxLegal.com
Copyright © 1996,1998,2001 by James C.Ray
Cover design © 1998 by Sourcebooks,Inc.®
All rights reserved.No part of this book may be reproduced in any form or by any electronic or mechanical means
including information storage and retrieval systems—except in the case of brief quotations embodied in critical articles
or reviews—without permission in writing from its publisher,Sourcebooks,Inc.®Purchasers of the book are granted a
license to use the forms contained herein for their own personal use.No claim of copyright is made in any government
form reproduced herein.
Third Edition,2001
Second Printing,May,2002
Published by:Sphinx®Publishing,An Imprint of Sourcebooks,Inc.®
Naperville Office
P.O.Box 4410
Naperville,Illinois 60567-4410
630-961-3900
Fax:[phone]
www.SphinxLegal.com
www.sourcebooks.com
This publication is designed to provide accurate and authoritative information in regard to the subject matter
covered.It is sold with the understanding that the publisher is not engaged in rendering legal,accounting,or other
professional service. If legal advice or other expert assistance is required, the services of a competent professional
person should be sought.
From a Declaration of Principles Jointly Adopted by a Committee of the
American Bar Association and a Committee of Publishers and Associations
This product is not a substitute for legal advice.
Disclaimer required by Texas statutes.
Library of Congress Cataloging-in-Publication Data
Ray,James C.,1945-
The most valuable business legal forms you’ll ever need / James C.Ray.-- 3rd ed.
p. cm.-- (Legal survival guides)
Includes index.
ISBN 1-57248-167-6
1. Contracts--United States--Forms. I. Title. II.Series.
KF801.A65 R39 2001
346.7302’0269--dc21
2001041173
Printed and bound in the United States of America.
VHG Paperback — 10 9 8 7 6 5 4 3 2
C
O N T E N T S
USING SELF-HELP LAW BOOKS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
The Purpose of This Book
Organization of This Book
Applicable Laws
CHAPTER 1: HOW CONTRACTS WORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
A “Private”Kind of Law
Enforcing Contracts
Getting It in Writing
Signatures
Notaries and Acknowledgments
Amending a Contract
Assigning a Contract
Terminating Contracts
CHAPTER 2: EMPLOYEES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Employment Contracts
Resignation and Termination
Special Employment Agreements
References
CHAPTER 3: INDEPENDENT CONTRACTORS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Employee versus Independent Contractor
Consultants
the most valuable business legal forms you’ll ever need
CHAPTER 4: POWERS OF ATTORNEY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
CHAPTER 5: BUYING, SELLING,AND LEASING REAL ESTATE . . . . . . . . . . . . . . . . . . . . . . . . 41
Buying and Selling Real Estate
Leasing Real Estate
Managing the Lease
CHAPTER 6: BUYING, SELLING,AND RENTING MERCHANDISE AND EQUIPMENT . . . . . . . . . . 57
Sale or Purchase of Equipment on an Installment Plan
Various Contract Warranties
Consignment Sales
Equipment Rental Agreements
Uniform Commercial Code Transactions
CHAPTER 7: SALE AND PURCHASE OF A BUSINESS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Stock Transactions
Asset Transactions
CHAPTER 8: BORROWING AND LENDING MONEY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Promissory Notes
Securing the Loan
Delinquent Accounts
CHAPTER 9:AVOIDING LIABILITY AND SETTLING DISPUTES . . . . . . . . . . . . . . . . . . . . . . . . 89
Protecting against Liability before It Arises
Discharging Liability after It Arises
Settling Disputes without Going to Court
CHAPTER 10: MISCELLANEOUS FORMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Unsolicited Ideas,Proposals,and Materials
Quotes and Endorsements
Affidavits
Receipts
APPENDIX: FORMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
iv
U S - H
S I N G E L F E L P
L B
AW O O K S
B
efore using a self-help law book, you should realize the advantages
and disadvantages of doing your own legal work and understand the
challenges and diligence that this requires.
THE GROWING Rest assured that you won’t be the first or only person handling your
TREND own legal matter. For example, in some states, more than seventy-five
percent of divorces and other cases have at least one party representing
him or herself. Because of the high cost of legal services, this is a major
trend and many courts are struggling to make it easier for people to rep-
resent themselves. However, some courts are not happy with people
who do not use attorneys and refuse to help them in any way.For some,
the attitude is,“Go to the law library and figure it out for yourself.”
We at Sphinx write and publish self-help law books to give people an
alternative to the often complicated and confusing legal books found in
most law libraries.We have made the explanations of the law as simple
and easy to understand as possible.Of course,unlike an attorney advis-
ing an individual client, we cannot cover every conceivable possibility.
COST/VALUE Whenever you shop for a product or service,you are faced with various
ANALYSIS levels of quality and price. In deciding what product or service to buy,
you make a cost/value analysis on the basis of your willingness to pay
and the quality you desire.
the most valuable business legal forms you'll ever need
When buying a car, you decide whether you want transportation, com-
fort, status, or sex appeal.Accordingly, you decide among such choices
as a Neon, a Lincoln, a Rolls Royce, or a Porsche. Before making a
decision, you usually weigh the merits of each option against the cost.
When you get a headache,you can take a pain reliever (such as aspirin)
or visit a medical specialist for a neurological examination. Given this
choice, most people, of course, take a pain reliever, since it costs only
pennies; whereas a medical examination costs hundreds of dollars and
takes a lot of time.This is usually a logical choice because it is rare to
need anything more than a pain reliever for a headache. But in some
cases, a headache may indicate a brain tumor and failing to see a spe-
cialist right away can result in complications. Should everyone with a
headache go to a specialist? Of course not, but people treating their
own illnesses must realize that they are betting on the basis of their
cost/value analysis of the situation.They are taking the most logical option.
The same cost/value analysis must be made when deciding to do one’s
own legal work. Many legal situations are very straight forward,
requiring a simple form and no complicated analysis. Anyone with a
little intelligence and a book of instructions can handle the matter
without outside help.
But there is always the chance that complications are involved that only
an attorney would notice. To simplify the law into a book like this,
several legal cases often must be condensed into a single sentence or
paragraph. Otherwise, the book would be several hundred pages long
and too complicated for most people. However, this simplification
necessarily leaves out many details and nuances that would apply to
special or unusual situations. Also, there are many ways to interpret
most legal questions.Your case may come before a judge who disagrees
with the analysis of our authors.
Therefore, in deciding to use a self-help law book and to do your own
legal work, you must realize that you are making a cost/value analysis.
You have decided that the money you will save in doing it yourself
vi
using self-help law books
outweighs the chance that your case will not turn out to your
satisfaction.Most people handling their own simple legal matters never
have a problem, but occasionally people find that it ended up costing
them more to have an attorney straighten out the situation than it
would have if they had hired an attorney in the beginning.Keep this in
mind if you decide to handle your own case, and be sure to consult an
attorney if you feel you might need further guidance.
LOCAL RULES The next thing to remember is that a book which covers the law for the
entire nation, or even for an entire state, cannot possibly include every
procedural difference of every county court. Whenever possible, we
provide the exact form needed;however,in some areas,each county,or
even each judge,may require unique forms and procedures.In our state
books, our forms usually cover the majority of counties in the state, or
provide examples of the type of form that will be required. In our
national books, our forms are sometimes even more general in nature
but are designed to give a good idea of the type of form that will be
needed in most locations. Nonetheless, keep in mind that your state,
county, or judge may have a requirement, or use a form, that is not
included in this book.
You should not necessarily expect to be able to get all of the informa-
tion and resources you need solely from within the pages of this book.
This book will serve as your guide, giving you specific information
whenever possible and helping you to find out what else you will need
to know. This is just like if you decided to build your own backyard
deck.You might purchase a book on how to build decks.However,such
a book would not include the building codes and permit requirements
of every city, town, county, and township in the nation; nor would it
include the lumber, nails, saws, hammers, and other materials and tools
you would need to actually build the deck.You would use the book as
your guide,and then do some work and research involving such matters
as whether you need a permit of some kind, what type and grade of
wood are available in your area, whether to use hand tools or power
tools, and how to use those tools.
vii
the most valuable business legal forms you'll ever need
Before using the forms in a book like this, you should check with your
court clerk to see if there are any local rules of which you should be
aware, or local forms you will need to use. Often, such forms will
require the same information as the forms in the book but are merely
laid out differently,use slightly different language,or use different color
paper so the clerks can easily find them. They will sometimes require
additional information.
CHANGES IN Besides being subject to state and local rules and practices, the law is
THE LAW subject to change at any time.The courts and the legislatures of all fifty
states are constantly revising the laws. It is possible that while you are
reading this book, some aspect of the law is being changed or that a
court is interpreting a law in a different way.You should always check
the most recent statutes, rules and regulations to see what, if any
changes have been made.
In most cases,the change will be of minimal significance.A form will be
redesigned,additional information will be required,or a waiting period
will be extended. As a result, you might need to revise a form, file an
extra form,or wait out a longer time period;these types of changes will
not usually affect the outcome of your case. On the other hand,
sometimes a major part of the law is changed, the entire law in a
particular area is rewritten,or a case that was the basis of a central legal
point is overruled. In such instances, your entire ability to pursue your
case may be impaired.
Again, you should weigh the value of your case against the cost of an
attorney and make a decision as to what you believe is in your best interest.
viii
I
N T R O D U C T I O N
T P T B
HE URPOSE OF HIS OOK
This book has a broad application.It is intended to provide useful forms
for all businesses, whatever their legal structure may be.Therefore, for
businesses run as partnerships, sole proprietorships, corporations or
other forms, this book stands alone.
This book may decrease dependence on lawyers, but it may not. It will
have served its purpose if it helps you to recognize the occasions in
which you do need a lawyer, and then helps you to use your lawyer
more efficiently.
Failing to hire a lawyer when you need one is not likely to be an econ-
omy. If, in reading this book, you discover that what you want to do is
more complicated than you imagined or involves a large sum of money,
then get a lawyer. It would be better to pay for a lawyer, even if in the
end you determine his or her services were unnecessary,rather than try
to handle a complex matter for which you are unqualified on your own.
Use your lawyer’s services wisely; do not leave everything up to him or
her. You know your business and what is important for it. The best
lawyer’s ideas about your business may be completely wrong, and he or
she may attach importance to the unimportant (because it was important